As Congress tackles reforming Fannie Mae and Freddie Mac, the Federal Home Loan Bank system is taking care not to get lumped in with them.

The FHLB is anxious to distance itself from those troubled institutions as lawmakers deal with what could be a large overhaul of the government-sponsored entities, said Edward Hjerpe, the FHLB of Boston president. That means it’s been working to explain the differences between Fannie, Freddie and the FHLB – including a different business model, as well as the fact that the FHLB system is profitable.

Hjerpe made his comments at the New England Mortgage Expo at MGM Grand at Foxwoods on Friday morning, outlining some of the challenges of the FHLB system as well as the progress his branch has made in recent months.

The FHLB system is also dealing with the same kinds of economic headwinds that are affecting its member banks. The institution lends to its member banks, yet member banks aren’t especially in need of such loans right now, he said. Banks are mostly quite liquid in the current environment, and are busily de-leveraging, rather than taking on more credit.

The FHLB of Boston, which provides wholesale funding to its 460 banks throughout the six New England states it covers, has struggled recently to overcome troubled investments made during the financial boom. Its efforts to scale back expenses have helped it return to profitability, and cost-saving efforts are ongoing — in October, for example, the bank arranged to move to cheaper offices.

That turnaround has aided the FHLB of Boston’s ability to focus on serving members, Hjerpe noted, instead of spending much of its time trying to shore up its troubled financial situation.

Still, the institution has yet to re-start its dividends program for members, he said. That is one of FHLB of Boston’s immediate goals; the second is to re-purchase its excess stock, and the third is to maintain its affordable housing programs.

The institution has contributed a great deal to affordable housing and economic development in the form of community development advances (CDAs), Hjerpe said. Since 1990, the FHLB of Boston has financed $1.8 billion for housing in Connecticut and $6.6 billion for Massachusetts units. Throughout New England, the local FHLB gave out $5.1 million total in 2010.